Analysts Discuss the Future of IT during Gartner Symposium/ITxpo 2009, October 18-22, in Orlando The IT industry is exiting its worst year ever, as worldwide IT spending is on pace to decline 5.2 percent, according to Gartner, Inc. Worldwide enterprise IT spending will struggle more with IT spending dropping 6.9 percent. The IT industry will return to growth with 2010 IT spending forecast to total $3.3 trillion, a 3.3 percent increase from 2009.
Gartner provided the latest outlook for the IT industry during Gartner Symposium/ITxpo, which is taking place here through October 22. While IT spending will increase next year, Gartner cautioned IT leaders not to be overly optimistic.
“While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of CIOs the IT budget will be 0 percent or less in growth terms. It will only slowly improve in 2011.”
The computing hardware market has struggled more than other segments with worldwide hardware spending forecast to total $317 billion in 2009, a 16.5 percent decline. In 2010, spending on hardware spending will be flat. Worldwide telecom spending is on pace to decline 4 percent in 2009 with revenue of nearly $1.9 trillion. In 2010, telecom spending is forecast to grow 3.2 percent. Worldwide IT services spending is expected to total $781 billion in 2009, and it is forecast to grow 4.5 percent in 2010. Worldwide software spending is forecast to decline 2.1 percent in 2009, and the segment is projected to grow 4.8 percent in 2010.
On a regional basis, emerging regions will resume strong growth. “By 2012, the accelerated IT spending and culturally different approach to IT in these economies will directly influence product features, service structures, and the overall IT industry. Silicon Valley will not be in the driver’s seat anymore,” Mr. Sondergaard said.
From a budget perspective, there are three important items that IT leaders must consider in 2010:
Mr. Sondergaard said three additional topics that were important in 2009 will continue to dominate IT leaders’ agendas in 2010. These three topics include
While those topics are key to IT agendas today, Mr. Sondergaard highlighted three themes that will become important going forward. They include:
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the industry's largest and most important annual gathering of CIOs and senior IT executives. This event delivers independent and objective content with the authority and weight of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. They rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency.
Upcoming dates and locations for Gartner Symposium/ITxpo include:
October 18-22, Orlando, Florida: www.gartner.com/us/symposium
November 2-5, Cannes, France:www.gartner.com/eu/symposium
November 11-13, Tokyo, Japan: www.gartner.com/jp/symposium
November 17-19, Sydney Australia:www.gartner.com/au/symposium
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